2018 (10) TMI 933
Entitled to deduction u/s 80P(2)(d) on interest received on investments made with Alapuzha District Cooperative Bank Limited - Held that - The benefit of this section is available only for the interest / dividend that are received by a co-operative society for investments made with another co-operative society. In the instant case, the assessee had produced certificate of registration of the payer, viz., Alappuzha District Co-operative Bank Limit....... + More
2018 (10) TMI 932
Disallowance on account of pro-rate interest on loan u/s 36(i)(iii) - Held that - Hon ble Supreme Court in the case of CIT vs. Munjal Sales Corporation 2008 (2) TMI 19 - SUPREME COURT , wherein held that if assessee has huge interest free funds including the profit earned by the assessee during the year which is sufficient to cover the advancement of loan, then no interest should be disallowed. The assessee has demonstrated that the huge amount o....... + More
2018 (10) TMI 931
Disallowance u/s 14A - Held that - Disallowance under section 14A cannot be made where the dominant object of the investment is controlling interest. However the Hon‟ble Supreme Court in case of Maxxopp investments Ltd Vs. Commissioner of income tax (2018 (3) TMI 805 - SUPREME COURT OF INDIA) has held that the dominant purpose in making investment in shares is not relevant for the purpose of disallowance to be made under section 14 A of the....... + More
2018 (10) TMI 930
Monetary limit - tax effect - cumulative tax effect - Held that - Paragraph 5 of CBDT Circular No.3/2012 had come up for consideration before the Hon ble Karnataka High Court in the case of CIT, Central Circular Vs. PSI Hydraulics 2012 (10) TMI 1184 - KARNATAKA HIGH COURT wherein held merely because the order of the CIT(A) is consolidated order passed for several years tax effect should not be seen for each AY separately. The Hon ble Karnataka Hi....... + More
2018 (10) TMI 929
Addition on account of excess stock found during the course of survey action - unrecorded and unexplained stock / expenditure - Held that - The cost of items which has been recorded in the bill of entry, has been paid by the assessee. In terms of section 69C of the Act, if the assessee offers no explanation about the source of the expenditure, or the explanation offered by him is not in the opinion of the Assessing Officer, satisfactory, the amou....... + More
2018 (10) TMI 928
Deduction u/s 54F - capital gain arising on transfer of depreciable asset - whether the capital gain resulting from sale of depreciable assets is short term capital gain or long term capital gain for the purpose of exemption under Section 54F towards investment in new house - double deduction - Held that - In the case of CIT vs. ACE Builders (P.) Ltd. 2005 (3) TMI 36 - BOMBAY HIGH COURT has held that the legal fiction created in Section 50 is to ....... + More
2018 (10) TMI 927
TDS u/s 195 - Limitation for issue of notice u/s 201(1)/201(1A) - proceedings initiated after lapse of 5 years - failure to deduct TDS on transfer of immovable property to the assessee by the non-resident - assessee in default - Held that - In the instant case the fact that the vendor is NRI was recorded in the sale deed itself, as evident from the Ld.CIT(A) s order and he is the resident of 7690A, Green Meadow, USA. Having recorded the residenti....... + More
2018 (10) TMI 926
Penalty levied u/s 271(1)(c) - non specification of charge - defective notice - Held that - From the notice it is not clear whether Assessing Officer has initiated penalty proceedings for concealment of particulars of income or for furnished inaccurate particulars, however, the Assessing Officer has imposed penalty for filing of inaccurate particulars of income. Therefore, the notice issued by the Assessing Officer is a vague notice and is liable....... + More
2018 (10) TMI 925
Addition on account of machinery surrendered during the course of survey - whether the assessee made any payment out of undisclosed sources for acquiring the 6 moulding machines which were found at the factory premise of the assessee during the course of survey proceeding - cording statement at midnight though the assessee has alleged that the statement was recorded under pressure and intimidation - Held that - On perusal of the statement, we fin....... + More
2018 (10) TMI 924
Addition u/s 69A on account of unexplained unsecured loans - Held that - There is a material on record and finding of fact by the Ld. CIT(A) which has not been rebutted by the department that out of the said amount added by the AO, sums aggregating to ₹ 89,42,500/- were in fact cheques given to the assessee on 31.3.2010 which were not presented to the bank before the end of the year and once the amount has not been received during the year ....... + More
2018 (10) TMI 923
TPA - Transfer pricing - selection of comparable - selection criteria - Held that - The assessee is engaged in the business of manufacture and trading of laboratory and processing equipment. The assessee imports products from IKA Group for sale in the domestic market and also undertakes manufacturing operations locally to export the products to IKA Group. In addition, the assessee also provides research and development services and marketing and ....... + More
2018 (10) TMI 922
Deemed Dividend u/s 2(22)(e) - beneficial or the registered shareholder of the company - Held that - Under Article 141 of the Constitution, ratio of decision of the Hon ble Supreme Court and principle underlying decision is binding. It is most crucial to note that in that case matter was referred to reconsider the earlier decision with their observation that for applying deemed dividend provision it is sufficient if the shareholder is beneficial ....... + More
2018 (10) TMI 921
Exclusion of claim on account of interest for computing deduction u/s 10B - As decided in assessee s own case for Assessment Year 2009-10 2015 (2) TMI 102 - ITAT DELHI interest income having close nexus with the business activity of the assessee is assessable as income from business and, hence, eligible for the benefit u/s 10A and section 10B. In view of the above discussion, we hold that the assessee is entitled to deduction u/s 10B of the Act i....... + More
2018 (10) TMI 920
Penalty u/s.271(1)(c) - disallowance of expenses - assessee claimed the expenses were for business purpose only and not for personal purpose - Held that - Company is engaged in the business of financial services for its clients and during the year under consideration the company was not able to get fruitful results for its clients and hence, no fees were earned by the company during the year under consideration. - Since, the expenses are of fixed....... + More
2018 (10) TMI 919
Addition invoking the provisions of Section 14A r.w.r.8D - Held that - As held in STHITHI INSURANCE SERVICES PVT. LTD. AND VICE-VERSA 2018 (6) TMI 1538 - ITAT CHENNAI application of Rule 8D is not automatic. If the assessee computes to the satisfaction of the Ld.Revenue Authorities the expenses incurred by it with respect to investments earning exempt dividend then the same should be disallowed. Only when such computation is not possible Rule 8D ....... + More
2018 (10) TMI 918
Disallowing the deduction of Interest paid on overdraft facility claimed by the appellant from Interest earned on FDR u/s 57(iii) - Held that - There is no dispute that the assessee purchased FD of ₹ 12 crores out of interest free loan from one trustee, namely, Dr Mrs Vimla Lal. There is no dispute that the assessee availed overdraft facility against the said FD and utilised the borrowing towards purchase of shares of a group company. In ou....... + More
2018 (10) TMI 917
Revision u/s 263 - section 14A disallowance - Held that - The assessee has shown profit on sale on investment of ₹ 3,21,933/- in its statement of computation for assessment year 2011-12. The assessee in its reply to the show cause notice has specifically contended that the assessee has not earned any exempt income during the year. The amount of ₹ 3,21,933/- shown in the computation of income is not exempt income. It has been offered a....... + More
2018 (10) TMI 916
Addition being cash deposits made into the bank accounts of the assessee - Held that - We are unable to agree with the percentage of profit claimed by the assessee. The fact that the receipts are coming from faraway places also show that the assessee should be incurring expenses in his business. Under these set of facts, we are of the view that this issue may be put to rest, if the net income , i.e., net of all expenses is estimated at 5% of the ....... + More
2018 (10) TMI 915
Addition u/s. 14 A r.w.r. 8D - Held that - The assessee has claimed exempt dividend income of ₹ 13038588/- and that was earned from non interest bearing funds and assessee has not made any expenditure in order to earn above said income. similar facts, ITAT decided matter in favour of assessee and a lump sum disallowance of ₹ 20,000/- was made. Therefore with consonance to the aforesaid ITAT order, we dismiss this ground of appeal of t....... + More
2018 (10) TMI 914
Addition towards deemed dividend U/s.2(22)(e) - Held that - From the order of the CIT(A), it is crystal clear that there was various commercial factors existing between the assessee and M/s. Samba Publishing Company Pvt. Ltd. The business transaction between the assessee and M/s. Samba Publishing Company Pvt. Ltd., were intermingled and both the entities were consistently working together to develop a common business. - The circular of the CBDT c....... + More
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